The foreign debt repayment is an important part of efforts to maintain the government’s credibility in managing foreign debt.Jakarta (ANTARA) - Indonesia's foreign debt fell 0.1 percent to US$415.1 billion in the second quarter of 2021 from US$415.3 billion the previous quarter, Bank Indonesia (BI) reported on Monday.
The growth of foreign debt also slowed to 1.9 percent year-on-year (yoy) in the second quarter of 2021 from 7.2 percent yoy in the previous quarter.
The drop was the result of the slow growth of the government’s foreign debt and the contraction of the private sector’s foreign debt, executive director/chief of BI's communication department, Erwin Haryono. said in an official statement released in Jakarta on Monday.
The government’s foreign debt in the second quarter of 2021 reached US$205 billion, up 4.3 percent yoy and lower than 12.6 percent recorded in the previous quarter due to a decline in the amount of foreign debt along with the settlement of debts that fell due in the second quarter of 2021, he explained.
“The foreign debt repayment is an important part of efforts to maintain the government’s credibility in managing foreign debt,” Haryono said.
Related news: Indonesia's external debt declines to US$415 bln in May
Meanwhile, net capital inflows to the domestic market for state bonds increased compared to the previous quarter, along with investors’ improving confidence, thereby supporting liquidity in the domestic state bond market, he noted.
The positive trend also supported the government’s effort to manage financing in a cautious and measurable way, he said. The current financing also plays a big role in the handling of COVID-19 pandemic and implementation of the national economic recovery PEN program, he added.
The government’s foreign debts will be managed in a cautious, credible, and accountable way to support priority budgets, Haryono said.
The government’s foreign debt in the second quarter was relatively safe and controllable since 99.9 percent of the debt were long-term debt, he added.
Related news: Economist proposes five steps to control government debt
Translator: Agatha Olivia Victoria, Suhart
Editor: Rahmad Nasution
Copyright © ANTARA 2021
